Used as a key intermediate in the synthesis of fluorinated pharmaceuticals, particularly in the development of anti-inflammatory and central nervous system agents. Its nitrile and hydroxyl functional groups allow for further chemical modifications, making it valuable in building complex drug molecules. The difluoromethoxy group enhances metabolic stability and membrane permeability, which improves the pharmacokinetic properties of final active compounds. Commonly employed in medicinal chemistry for structure-activity relationship studies involving aromatic rings with fluorine substitutions.